APRA’s letter on the review of the prudential framework for groups
On Monday 24 October 2022, John Lonsdale, the APRA Deputy Chair, issued a letter to all APRA-regulated entities outlining a roadmap for the review of the prudential framework for groups. The letter supports APRA’s recent paper regarding modernising the prudential architecture, which was published on 12 September 2022. The aim of APRA’s review is to […]
ReadmoreInsights learnt from APRA’s Risk Culture Survey
On 10 November 2022, APRA released the results from their most recent risk culture survey. The survey was provided to 18 authorised deposit-taking institutions (ADIs) between October and December 2021. The 18 ADIs comprised the five largest banks (Major ADIs) and 13 smaller entities, consisting of regional banks, foreign bank subsidiaries/branches, mutual banks, credit unions […]
ReadmoreAPRA releases amendments to capital framework for ADIs
In November 2021, APRA released final prudential standards and guidance that accompany the ADI capital reforms, together with final prudential practice guides in July 2022. In the July 2022 release, APRA consulted on two proposals put forward for consequential amendments to be made to the capital frameworks. The proposals were encouraged to ensure consistency with […]
ReadmoreAPRA to strengthen transfer planning in superannuation
On 10 November 2022, APRA released a discussion paper seeking consultation on strengthening superannuation trustee planning in successor fund transfers (SFTs) (Discussion Paper). The superannuation industry has seen a recent spate of SFTs. By way of example, QSuper and Sunsuper merged in February earlier this year to create the Australian Retirement Trust. LGIAsuper and Energy […]
ReadmoreASIC publishes ‘Report 740: Insights from the Reportable Situations Regime: October 2021 to June 2022’
On 27 October 2022, ASIC released its first publication pertaining to information lodged under the reportable situations regime (formerly known as ‘breach reporting’). By way of background, the reportable situations regime commenced on 1 October 2021. The regime’s purpose was to strengthen the obligations of Australian Financial Services (AFS) licensees and to extend this obligation […]
ReadmoreTo retain or to destroy? The interaction between privacy, document retention and destruction policies
The significance of document or data retention, whilst not as fast paced as cryptocurrency or high yielding funds, cannot be understated. Over the past couple of months, we have witnessed some high-profile data breaches that have brought to the forefront a number of questions about how data is retained (as well as destroyed), the obligations, […]
ReadmoreCryptocurrencies and ‘earning’ products – ASIC makes managed investment scheme claims
ASIC has commenced civil penalty proceedings in the Federal Court against fintech company Block Earner alleging it provided unlicensed financial services in relation to its crypto-asset based products and that it operated an unregistered managed investment scheme. ASIC is seeking declarations, injunctions, and pecuniary penalties from the Court. It is tricky territory, given crypto assets […]
ReadmoreThe crypto winter and custody – practical advice for shoring up custody arrangements
The digital assets world has been rocked by the liquidity run on FTX the week, the world’s second largest exchange, and the near buyout by Binance, the world’s largest exchange. While there are various reasons being put forward for the issues facing FTX, in a febrile environment part of the focus is on custody of […]
ReadmoreCartel Update: First criminal cartel jail sentence handed down by Federal Court of Australia
The Federal Court of Australia has affirmed its position that any cartel conduct, as prohibited by the Competition and Consumer Act 2010 (Cth) (CCA), will be treated extremely seriously by the Courts and that in addition to companies involved in such behaviour being prosecuted and fined, that the Courts have every intention to hold individual […]
ReadmoreMisleading & deceptive conduct and cryptocurrencies – ASIC turns up the heat in uncertain territory
Introduction ASIC has commenced civil penalty proceedings in the Federal Court against BPS Financial Pty Ltd (BPS) for allegedly making false, misleading or deceptive representations and engaging in unlicensed conduct in relation to a non-cash payment facility involving a crypto-asset token called Qoin (Qoin). ASIC is seeking declarations, pecuniary penalties, injunctions and adverse publicity orders […]
ReadmoreDesign, distribution and cryptocurrency investment – a sharp position taken by ASIC
Introduction ASIC’s Product Intervention Power (PIP) under its Design & Distribution (DDO) regime is still a relatively new tool in their regulatory tool kit. It allows ASIC to stop, or impose conditions on, the issue and distribution of financial products. We have previously considered how ASIC may use the power in connection with overseas financial […]
ReadmoreBlimey! Brits leading the charge again on crypto developers’ duty of care
It is no secret that the world’s regulators continue to develop laws and regulations relating to cryptocurrency. A recent decision of the English Court of Appeal (Court of Appeal) considered the duty of care of developers of an open-source bitcoin software system. The outcome has the potential to help integrate crypto into our society or […]
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